A new study by Simply Business, which spoke with more than 600 landlords, found that one third of respondents said their rental properties weren’t as profitable as they used to be. The change has occurred since buy-to-let mortgage tax relief was reduced. This process started in April 2017.
There are many issues for landlords to contend with
If there was only one issue for landlords to deal with, managing rental property would be simple. Of course, this isn’t the case, some of the other key challenges cited by landlords include:
· Rising taxes, said by 32% of landlords
· Buy-to-let mortgage tax changes has caused 16% of landlords to sell or consider selling rental property
· 11% of landlords said they’ve had to pass tax increases onto tenants, through higher rents
· 50% of landlords expressed concern over more regulations in the rental market
This is an uncertain time in the rental market, and 58% of landlords said uncertainty and changing legislation was the most significant issue they faced.
45% of landlords cited rising costs as the biggest challenge they face, and 18% of landlords said they are concerned about how they can maintain their rental property.
There is positivity in the rental sector
While there are challenges in the rental market, it is not as though there isn’t positivity in the market.
· 22% of respondents said they would only reconsider selling rental property depending on what information the Government offers
· 18% of landlords are optimistic about generating income
· 29% of landlords expect to increase their rental yield by up to 5% in 2022
· 23% of landlords intend to purchase another rental property in 2022
If you are looking to enter the Finchley rental market, there is significant demand for rental property. We can help you manage rental property, and connect with tenants.
Alan Thomas is the UK CEO at Simply Business, and he spoke with Property Reporter, saying; “With countless changes to regulations, along with rising costs over the last few years, landlords are feeling the squeeze. Our study has revealed the worries faced by those in the UK, with many questioning the value of their portfolio and some even considering selling.”
Alan Thomas continued by saying; “Contributing over £16 billion annually, if a wave of residential landlords were to sell up then it would have a huge impact on the UK economy. What’s more, with landlords offering much-needed accommodation to over 4.4 million households, the hit to our communities could be devastating. It’s crucial that we recognise both their importance and the support required by landlords to manage the challenges they face – including changes to government legislation, such as the reduction of buy-to-let mortgage tax relief.”
Contact David Harris & Co to let in Finchley
We have assisted many Finchley landlords connect with tenants, and we know where these groups are looking for rental property. You can take the stress out of connecting with your ideal tenant by turning to a local letting specialist in Finchley.
If you want to make an informed decision in and around Finchley’s letting market, we are here for you. If you have any questions about the local market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
